SoftBank and Partners Launch Japan AI Foundation Model Development

SoftBank Group, NEC, Sony Group, and Honda Motor Company have established a new company called Japan AI Foundation Model Development to create domestically produced artificial intelligence. The venture aims to close the technological gap between Japan and leaders in the United States and China, strengthening the country's technological independence and global competitiveness.

The new entity will be led by a SoftBank executive, with initial development spearheaded by SoftBank and NEC. The founders each took a stake of more than 10% in the firm, which plans to hire approximately 100 AI engineers. Beyond the core founders, the initiative received investments from Nippon Steel Corp, Kobe Steel Ltd, and Japan's three megabanks: Mitsubishi MUFG Bank, Sumitomo Mitsui Banking Corp, and Mizuho Bank.

The company intends to roll out AI models to domestic Japanese firms and expand its applications into factory robotics. To fund these efforts, the venture will apply for support from the New Energy and Industrial Technology Development Organization, which has earmarked up to 1 trillion yen for domestic AI initiatives. Preferred Networks is expected to join the venture at a later stage.